Abeje Kassahun 2020 Smu GMB Sgs 0037 2009b Reviewed Final June 2020
Abeje Kassahun 2020 Smu GMB Sgs 0037 2009b Reviewed Final June 2020
Abeje Kassahun 2020 Smu GMB Sgs 0037 2009b Reviewed Final June 2020
BY
(SGS/0037/2009B)
JUNE, 2020
BY
(SGS/0037/2009B)
JUNE, 2020
ii
EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEES’ ENGAGEMENT:
THE CASE OF BANK OF ABYSSINIA
By
ABEJE KASSAHUN
________________________
Dean, Graduate Studies Signature and Date
Dr Terefe Feyera
Signature and Date
Advisor
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Table of Contents
Page
Introduction................................................................................................................................1
1.1 Background of the study .................................................................................................1
1.2 Background of the Company………..……….…………………………………………2
1.3 Statement of the problem ................................................................................................3
1.4 Research questions .........................................................................................................5
1.5 Objective of the study...................................................................................................................5
1.5.1 General objective ...........................................................................................................5
1.5.2 Specific objectives..........................................................................................................6
1.6 Scope of the study ...............................................................................................................6
1.7 Limitation of the study…………………………..…………………………………….…..6
1.8 Significance of the study......................................................................................................7
1.9 Organization of the research report......................................................................................7
Chapter two..........................................................................................................................9
Literature review..................................................................................................................9
2.1. Theoretical
Review...............................................................................................................................9
2.1.1. Meaning of Organizational culture.................................................................................9
2.1.2. Models of Organizational Culture .............................................................................10
2.1.2.1 Charles Handy Model of Organizational Culture......................................................11
2.1.2.2 Denison Model of Organizational culture...............................................................................12
2.1.2.3 Robert A Cooke‟s Model of Organizational Culture ..............................................................13
2.1.2.4 Kim S. Cameroon and Robert E. Quinn .................................................................................14
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2.1.2.5 Edgar H. Schein's Model.............................................................................................15
2.1.3 Meanings of Employee Engagement ...........................................................................17
2.1.4 Characteristics of Employee Engagement ..................................................................18
2.1.5 Models of Employee Engagement................................................................................19
2.1.5.1 Andrews Brown Engagement Pyramid....................................................................................20
2.1.5.2 Dubin Employee Engagement Model......................................................................................20
2.1.5.3 Anitha‟s Employee Engagement Model...................................................................................21
2.1.5.4 Hewitt‟s Drivers of Engagement Model......................................................................22
2.1.6 Organizational Culture and Employee Engagement....................................................23
2.2 Empirical Review..............................................................................................................24
2.3 Conceptual Framework.....................................................................................................26
Chapter three............................................................................................................................28
Research design and methodology...........................................................................................28
3.1. Research Methodology......................................................................................................28
3.2. Description of the Study Area...........................................................................................28
3.3. Research Approach...........................................................................................................28
3.4. Research Design................................................................................................................29
3.5. Population and Sample..................................................................................................... 29
3.5.1 Sample Size Determination............................................................................................30
3.5.2. Sampling Method .........................................................................................................31
3.6. Data source and Type.......................................................................................................33
3.7. Data Collection Instrument..............................................................................................33
3.8. Validity of data..................................................................................................................33
3.9. Reliability of data..............................................................................................................33
3.10. Data Collection Procedures.............................................................................................34
3.11. Ethical consideration.......................................................................................................35
3.12. Data analysis...................................................................................................................35
3.13. Data processing and statistical treatment........................................................................36
Chapter four.............................................................................................................................37
Data presentation, analysis, and interpretation.........................................................................37
4.1. Descriptive Analysis....................................................................................................37
4.1.1. Demographic Profile of Respondents (Employees) ....................................................37
4.1.2. Descriptive Statistical Analysis......................................................................................38
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4.1.3. Descriptive Statistics of Organizational Culture..........................................................39
4.1.3.1. Descriptive Statistics of Clan Culture...................................................................41
4.1.3.2. Descriptive Statistics of Adhocracy Culture.........................................................42
4.1.3.3. Descriptive Statistics of Market Culture...............................................................43
4.1.3.4. Descriptive Statistics of Hierarchy Culture...........................................................45
4.1.4. Descriptive Statistics of Employee Engagement..........................................................47
4.1.4.1. Descriptive Statistics of Vigor..............................................................................47
4.1.4.2. Descriptive Statistics of Dedication......................................................................48
4.1.4.3. Descriptive Statistics of Absorption......................................................................49
4.2. Inferential Statistics......................................................................................................51
4.2.1. Correlation Analysis.....................................................................................................51
4.3. Regression Analysis.....................................................................................................52
4.3.1. Normality test...............................................................................................................52
4.3.2. Linearity test.................................................................................................................55
4.3.3. Homoscedasticity test .................................................................................................55
4.3.4. Multicolliniarity............................................................................................................56
4.4. Regression Output.............................................................................................................57
4.5. Summary of Hypotheses Testing......................................................................................60
4.6. Discussions....................................................................................................................... 61
Chapter five..............................................................................................................................62
Summary, conclusions and recommendations.........................................................................62
5.1. Summary of Findings........................................................................................................62
5.2. Conclusions.......................................................................................................................63
5.3. Recommendations for Policy and Practice........................................................................65
5.4. Limitation and implication for future research directions ................................................66
5.4.1. Limitation of the study...................................................................................................66
5.4.2. Suggestions for further studies ......................................................................................66
Reference ................................................................................................................................67
Appendix..................................................................................................................................73
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ACKNOWLEDGEMENTS
First and foremost, I would like to thank my God for giving me the energy and dedication to
complete this thesis. I also would like to forward my heartfelt gratitude and appreciation to
my advisor, Terefe Feyera (Phd) for his unreserved timely, professional, constructive
guidance, feedbacks and fast response on the draft. My special appreciation also goes to Bank
of Abyssinia Employees and management staffs who managed to participate in filling the
questionnaires virtually Via outlook and while maintaining social distancing and providing
necessary information for the research paper despite COVID 19 constraints.
Finally, I wish to thank my wife, mom and dad (you are always in my heart) without whose
effort my journey has been challenging.
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LIST OF ABBREVIATIONS AND ACRONYMS
EE - Employees Engagement
OC -Organization culture
x
LIST OF TABLES
Table Pages
xi
LIST OF FIGURES
Fig Page
xii
ABSTRACT
The study has sought the effects of organizational culture on employees' engagement in Bank
of Abyssinia. The study used quantitative research method and explanatory research design
to objectively answer the proposed research questions. Random Probability sampling
technique was used to select the employees from the three districts and head office and also
proportionate stratified sampling technique was adopted to treat the 360 participants. Out of
those, 340 employees have responded. Descriptive analysis, Pearson correlation, analysis of
variance (ANOVA) and regression were carried out to analyze the data using SPSS 20.
Descriptive analysis was used to determine which culture is dominant in the bank and the
level of their engagement and Correlation and Regression analysis was used to assess the
effects of organizational culture on the employees’ engagement. The study shows that there is
positive relationship between organizational culture (Clan culture, Adhocracy culture,
Market culture and Hierarchy culture) and employees’ engagement. Based on the findings,
the study recommends that Bank of Abyssinia should empower employees and reinforce team
orientations, embrace integration, co-ordination, organizational learning, agreement and
core values and they should create competence development to promote employees
engagement.
Keywords: Clan culture, Adhocracy culture, Market culture, Hierarchy culture and
Employees engagement.
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CHAPTER ONE
INTRODUCTION
Engaged employees are very critical to the success of an organization. Researchers try to find
out factors which have impact on employees‟ engagement and one of the factors which have
impact on employees engagement is organizational culture. And organizational culture is a
design of simple suppositions, created, revealed or established by a given group as it finds
ways on how to cope with its problems arising from the need to adopt to the external setting
as well as integrate internally that works well to be considered usable enough to be taught to
new members as the right way to feel, think and perceive in solving problems (Edgar H.
Schein ,1990) .
Previous research on the subject confirmed a solid connection between organizational culture
and engagement of work (Alarcon, Lyons, and Tartaglia, 2010). In a study carried out by
(Parent & Lovelace, 2015) on the impact of employee engagement and a positive
organizational culture on an individual‟s ability to adapt to organizational change, they
concluded that individual adaptability to change can be enhanced through a positive
organizational culture. They further concluded that organizations with a positive
organizational culture also foster both job and organizational engagement in their employees
and that employees with high levels of job engagement are less adaptable to change.
(Elizabeth, 2017) examined the effects of organizational culture (hierarchy, market, Clan,
1
adhocracy) on job satisfaction in the Ministry of Science and Technology and explained
adhocracy culture was the dominant culture in the Ministry. On top of this, there was positive
and moderate relationship between organizational culture and employees‟ job satisfaction. In
addition, the level of employees‟ job satisfaction was higher in the Ministry. Based on the
findings, it was concluded that the Ministry of Science and Technology had focused on new
innovation, risk taking and uniqueness of performance.
Culture isn‟t something unique to human being or a society. Organizations which are
composed of people from different cultural backgrounds also develop their own culture
throughout their operation. Organizational culture may have a positive or negative impact not
only on employee‟s engagement but also on the success of organizations.
Banking industry in Ethiopia is currently made up of 18 banks of which 16 are private and 2
public plays a very critical role in the countries overall economic performance and growth.
And significant number of new banks is under formation. As per the banking business
proclamation number 592/2008 (and Amendment Proclamation no. 1159/2019) commercial
banks are allowed to accept deposits, give loans, money transfer service, buying and selling
of gold and silver bullion, foreign exchange service , discounting bill of exchange and etc.
Banks apart from employing significant number of workforce are the main source of finance
for the country‟s economic activities. During the first quarter of 2019/20, Birr 39.6 billion
was disbursed in fresh loans, indicating a 31.8 percent annual growth. Of the total new loans
disbursed, the share of state owned banks was 29.5 percent and that of private banks was 70.5
percent. The Lion‟s share of the new loans went to finance domestic trade which accounted
for Birr 8.3 billion (21 percent) followed by international trade (Birr 7.7 billion or 19.6
percent), industry (Birr 7.2 billion or 18.2 percent), agriculture (Birr 4.1 billion or 10.3
percent) and housing & construction (Birr 3.9billion or 9.8 percent).The remaining balance
was taken up by other sectors (National Bank of Ethiopia, 2019/20 first quarter bulletin,
volume 36, number 01).
The present-day Bank of Abyssinia was established on February 15, 1996 (91 years to the
day fter the first but defunct private bank was established in 1906 during Emperor Menelik
II) in accordance with 1960 Ethiopian commercial code and the Licensing and Supervision of
Banking Business Proclamation No. 84/1994.Bank of Abyssinia started its operation with an
2
authorized and paid up capital of Birr 50 million, and Birr 17.8 million respectively, and with
only 131 shareholders and 32 staff.
In two decades since its establishment Bank of Abyssinia has registered a significant growth
in paid up capital and total asset. It also attracted many professional staff members, valuable
shareholders and large customers from all walks of life. This performance indicates public
confidence in the Bank and reliability and satisfaction in its services. Currently, employing
the state-of-art banking technology, the Bank provides excellence domestic, international and
special banking services to its esteemed and valuable customers. It also strives to serve all
economic and services sectors via its ever increasing branch networks throughout the
country.
Bank of Abyssinia has more than 6,400 staffs and works with known money transfer agents
such as Western Union, Express Money, Ria International, Trans-fast, Dahabshiil,
MoneyGram, kaah and Ezremit. Bank of Abyssinia, which started banking services with only
one branch in 1996, has 462 domestic branch networks, of which 214 branches are in Addis
Ababa and the remaining 248 are established in bankable towns all over the country.
(https://www.bankofabyssinia.com/index.php/profile/company-profile.html)
The purpose of this research is to analyze the effect of organizational culture on employees
engagement in Bank of Abyssinia and try to explain which culture type exists, the level of
engagement in the Bank and how do culture impact employee‟s engagement. It also further
suggests which culture should be promoted for the success of the Bank.
Employee engagement has three indicators namely vigor, dedication and absorption. Vigor is
manifested by employee‟s high levels of energy and mental resilience while working, the
willingness to invest effort in one‟s work, and persistence even in the face of difficulties.
Dedication is when employees are strongly involved on their work, and experience a sense of
significance, enthusiasm, inspiration, pride, and challenge. Those with a good ethic are
dedicated to their jobs and will do anything they can to ensure that they perform well. Often
this dedication leads them to change jobs less frequently, as they become committed to the
positions in which they work and are not eager to abandon these posts. They also often put in
extra hours beyond what is expected to see that they are workers who go beyond the rest of
3
the workforce and truly dedicate themselves to their positions. Absorption comes when
employees are fully concentrated and happily engrossed in one‟s work, whereby time passes
quickly and one has difficulties with detaching oneself from work (Arnold Bakker et. al,
2010) it refers to being fully concentrated.
Bank of Abyssinia recently launched new branding and tagline “The Choice for All” with the
aim to be the bank of choice for customers, employees and shareholders. The Bank wants to
achieve its visions among other things through its motivated employees and modern
technology. This tells us that engaged or good performing employees are the basis for the
success of the Bank. If this is the case identifying factors that impact employee‟s engagement
is critical to the very success of the Bank.
(Mersen, 2016), investigated the effect of four organizational culture traits namely,
involvement, consistency, adaptability and mission on employee commitment in Ethiopian
Airlines Company. The results show that the four traits measuring organizational culture
were all positively related with employee‟s commitment.
Even if many countable researches have been conducted on effect of organizational culture
on employee‟s engagement in other countries, there have been no studies of this nature and
the effect of different organizational cultures on employees engagement in the Ethiopian
banking industry particularly in Bank of Abyssinia. This paper therefore focuses on adding to
the above stated gap in knowledge by explaining the effect of organizational culture on
employee‟s engagement in Bank of Abyssinia.
In order to attain the optimal output of this research the following basic questions need to be
addressed.
In this section of the paper the general and specific objectives of the research will be stated.
The general objective of the study is to assess the effect of organizational culture on
employee‟s engagement in case of Bank of Abyssinia Addis Ababa branches and
departments.
5
1.5.2. SPECIFIC OBJECTIVES
In addition to the general objectives stated above, the study has the following specific
objectives:
The study is delimited the analysis of the effect of organizational culture on employees
engagement in the case of bank of Abyssinia employees who are working at head office and
branches located in Addis Ababa. The bank has a variety of employees and human resource
personnel levels. The employees can be classified into those who are managers and non-
managerial staffs. And all categories of employees who are working t head office and
branches located in Addis Ababa will be considered in the study. Employees of the bank will
be considered for this study excluding those out sourced employees.
The adequate of the output of this study was depending on the actual data acquired from the
selected representative samples. This intimate that, the finding and analysis of this paper was
depending up on the quality of their response. So that, lack of willingness, for various reasons
6
like suspect of miss use of the organization confidential information for nonacademic
purpose was limits the reliability of the research paper to achieve its objectives. The same as,
lack of pervious similar researches in Ethiopian case, and limited resource may affect the
qualities of the study output. Utmost, the researcher as a member of employee in BOA, his
personal perception, feeling for the organization, leads to personal bias and may affect the
research. But the researcher, as much as possible, tries to enhance these biases in order to
come up with sound conclusion.
The paper will give a very brief explanation on the effect of organizational culture on
employees‟ engagement. It will add knowledge on how to engage employees using
organizational culture. By classifying cultures in to group, we can identify which culture
engages employees better than others. The result of the paper can be used by any organization
that is interested in engaging employees using culture.
Bank of Abyssinia also able to comprehensively understand which culture prevails at the
bank. It will also help Bank of Abyssinia in developing strategies and policies that support an
organization culture which further engages the employees in order to achieve their goal.
The result of the paper will also be important to other banks and non-bank institutions which
are starting to know which cultures they may want to adopt as well as helping those that have
cultures that are not engaging to also borrow from the practice documented by this study.
Furthermore, this paper is significant in providing precedent for future studies.
This study is organized into five chapters. The first chapter covers a general introduction of
the study including the background of the study, statement of the problem, research
questions, and objectives of the study, significance of the study, scope of the study and
organization of the research report. The second chapter covers the literature relevant to the
study. It includes the concepts and theory, empirical framework and conceptual framework.
The third chapter elaborates research design and methodology: the type and design of the
study. It includes research method sampling technique, data collection method, and data
analysis that will be used in the study. The fourth chapter summarizes the findings of the
7
study and discusses them in detail. And finally, chapter five comprised three sections, which
include summery of findings, conclusions, and recommendation.
8
CHAPTER TWO
The following chapter has three subsections theoretical framework, empirical framework, and
conceptual framework. The theoretical framework presents about the meaning, models and
types of organizational culture and employees engagement. It also illustrates different culture
types forwarded by scholars and indicators of employee engagement. The second subsection,
the empirical framework, presents some studies from popular authors related to
organizational culture and employee‟s engagement. Final subsection, presents conceptual
framework that the research problem was derived from. The chapter presents an
understanding of what is going to be investigated.
The researcher under this section of the paper will elaborate about organizational culture,
meaning, typologies, models and elements of organizational culture.
Different scholars define organizational culture in a different ways and perspectives. In this
section of the paper the researcher presents some of the various definitions and the one
chosen for the purpose of the paper i.e. Schein‟s definition of organizational culture. Schein
(2004) define culture as a pattern of shared tacit assumptions that was learned by a group as it
solved its problems of external adaptation and internal integration that has worked well
enough to be considered valid and therefore, to be taught to new members as the correct way
to perceive, think, and feel in relation to those problems.
The implications of the above definition by Schein (2004) includes that first, we understand
culture is stable and not easy to change once it‟s developed since it‟s manifested as composite
knowledge –thinking, feeling and perceiving the environment which made up the
organizations successful. Second, the crucial component of culture is invisible and that is
why usually members of an organization can‟t tell you what kind of culture exists in their
organizations. Organizations also do culture assessment research since it‟s difficult to list
down what type of culture exists through simple observation. Third, we realize that there is
no right or wrong culture by its own, it all depends on the tacit assumptions of situation in
which the culture is to be applied.
9
Robbins and Judge (2013), also defined organizational culture as a system of shared meaning
held by members that distinguishes the organization from other organizations. And the
writers described culture in seven basic features or characteristics. First, innovations and risk
taking –the extent to which employees are allowed or encouraged to be innovative risk takers.
Second, attention to detail that is the extent to which employees are required to show
precision, analysis, and attention to detail. Third, outcome orientation-the extent to which the
employer focuses on results or outputs instead of the technique and processes used to achieve
them. Fourth, people orientation- the extent to which the employer‟s decision considers the
result on the people of the organization. Fifth, team orientation-the extent to which job tasks
are assigned around teams rather than individual. Sixth, the extent to which people are
aggressive and competitive rather than easy going. Seventh, the extent to which
organizational activities emphasizes maintaining the status quo in contrast to growth.
Peters and Waterman (1982) a dominant and coherent set of shared values conveyed by such
symbolic means as stories, myths, legends, slogans, anecdotes, and fairy tales (Griffin &
Moorhead, 2014). Organization culture is the unique configuration of norms, values, beliefs
and ways of behaving. Those characterize the manner in which groups and individuals
combine to get things done (Armstrong, 2006).
Culture is a system of informal rules that spells out how people are to behave most of the
time (Eldridge & Crombie, 1974). Culture is the commonly held beliefs, attitudes and values
that exist in an organization. Culture is the way we do things in the organization (Deal &
Kennedy, 1982).
There are different models of organizational culture as discussed by the scholars namely, Kim
S. Cameroon and Robert E. Quinn model, Edgar Schein‟s Model of Organizational Culture,
Robert A Cooke‟s Model of Organizational Culture, Denison‟s Framework of Organizational
10
Culture, Geert Hofstede, Fons Trompenaars, Charles Handy and Deal and Kennedy.
Cameroon and Quinn‟s model is taken as a working model or classification of organizational
culture for the purpose of this paper because it‟s the one widely discussed and have a tested
measurement i.e. OCAI (Organizational Culture Assessment Instrument ).
Charles Handy classified culture into four types namely „Power Culture‟, „Role Culture‟,
„Task Culture‟ and „Person Culture‟. According to Handy, Power Culture can be symbolized
as a „web‟ and it refers to control that is spread out like a network from the centre to the rest
of the organization. Power cultures are usually exists in small business organizations with
limited number of employees. Within these entities, the powerful senior‟s employees
Endeavour to get upper hand over the new comers or juniors. In business or organizations
where power culture prevails, rules and bureaucracies are kept to the minimum. These types
of organizations are also political, where decisions are taken mainly upon persuasion rather
than on bureaucratic or rational basis Handy, (1993).
Role Culture refers to a highly defined structured organization in which employees have
specified delegated authorities and which are offered security and predictability. Handy
describes the structure of this type of organization as a „Greek temple‟ since this culture
works by logic and rationality. Organizations with a role culture put their strengths in their
pillars, their roles and areas of expertise. The pillars often include the finance department and
the purchasing department, and the interaction between them is regularly controlled by rules
and procedures, which are the major methods of influence (Handy 1993:185). According to
Handy (1993), these type of organizations form hierarchical bureaucracies, and power is
derived from an individual‟s position and not according to one‟s expertise and
professionalism. Furthermore, organizations with role cultures are slow in recognizing the
need for change, and if the need is recognized, it takes a long time for change to be
implemented (Handy 1993:186).
Task Culture, on the other hand, is job oriented and it is present in organizations where
individuals work as a team and power is derived only from expertise and only when required
(Handy 1993). Handy (1993) represents this type of organization as a „net‟ in which much of
the power and influence lies at the „interstices‟ of the net (1993:188). The task culture puts
complete emphasis on getting the job done and hence, this type of culture tries to assemble
11
the suitable resources, the right employees at a suitable rank in the organization, and to let
them knuckle down (Handy 1993:188). This type of culture is very compliant, it is the most
type in which managers in middle, and first levels like to work.
A Person Culture is quite unusual and it reflects organizations in which individuals believe to
be superior to the organization they are employed in (Handy 1993:190). A group of
employees who are in accord often follows goals and objectives. Control systems and
management hierarchies are not viable in these cultures except by mutual approval. Influence
is mutual and the power-base is usually expert, meaning that individuals do what they are
good at and are paid attention to on apposite matters (Handy 1993:190). Handy (1993)
postulates that individuals within this type of culture are difficult to manage, and there is little
influence that can be conveyed to tolerate on them (1993:191). This is because alternative
employment is often easy for them to find due to their specializations. Handy (1993) argues
that each of the above types of cultures may be fine, but sometimes, employees are often
inflexible with regards to culture, meaning that they often believe in the myth that what
works well in one organization may also be successful in another (1993:183). In addition,
Handy (1993) adds that an employee who is successful in one type of culture may not always
do well in another (1993:204). Moreover, it is up to the executive of the organization to
handle all four cultures, to distinguish and to amalgamate within (Handy 1993:216).
The Denison model is based on four basic features of organizational culture: involvement,
consistency, adaptability and mission, each of them having three sub-groups. It‟s mostly used
to show the link existing between organizational culture and efficiency.
Denison characterizes the mutual influence of the four cultural factors upon the
organization‟s efficiency: mission and consistency, adaptability and involvement: Mission is
a characterization of organization‟s aims and directions of a strategic development, based on
the concept which has been developed by the organization and is future-oriented;
Involvement is a state during which the employees feel that their activity is tightly linked
with the goals of organization, that they have been empowered, that team work is to be
valued and the priority is given to the development of employees‟ capabilities; Consistency is
the high level of integration and coordination; Adaptability is a state within the frame of
which the organization flexibly responds to costumers‟ requirements, takes risks, learns from
their own mistakes and is ready for changes. Each of the four organizational culture factors
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has three variables – indices. Thus, involvement is characterized by such indices as
empowerment, team orientation, capability development; consistency – by core values,
coordination and integration, agreement; adaptability – by organizational learning, focus on
the customer, creating change; mission – by vision, goals and objectives, and strategy
(Denison, Hooijberg, Lane, Lief 2012).
According to Cooke (1987), the culture of an organization is the way employees behave at
the workplace to ensure stable future and growth. Robert A Cooke came up with three
categories of culture namely Constructive Culture, Passive Culture and Aggressive Culture.
The first culture type is Constructive Culture and it's culture type which encourage healthy
interaction amongst the employees of an organization. Employees have the opportunity and
liberty to share their thoughts, communicate and discuss things to the overall success of the
organization. Conflicts arise when employees feel neglected and are not allowed to speak
their minds. A constructive culture allows employees to use their potential efficiently through
facilitating discussions and exchange of ideas amongst employees.
The key features of a constructive culture are: Achievement: A constructive culture helps the
employees to achieve the results within the stipulated time line. Self-Actualizing: In this kind
of culture, an employee stays motivated and realizes full potential. Encouragement: A
constructive culture encourages employees to deliver their level best and strive hard for
furthering the image of the organization. Affinitive: The employees avoid conflicts and
unnecessary disputes and promote a positive ambience at the workplace.
13
The second Culture type is Passive Culture which makes the employees behave in a way
contrary to the way they think or feel is correct and should be the ideal way and the main aim
of the employee is to please their managers and make his/her job safe and secure in the
organization. In such a culture, employees unhappily adhere to the guidelines and follow the
rules and regulations just to save their job.
Approval, conventional, dependent and avoidance are the four characteristics of a passive
culture. Approval means employees can't make any decision by their own and they require
blessing of their manager before implementing any decision or idea. Conventional means
employees are bound by rules and regulations of the organization and act according to the
prescribed standards only. They aren't allowed to deviate. In Dependent culture, the
performance of the employees is dependent on the manager's decisions and they blindly
follow their boss's orders. In case of Avoidance culture employees tend to avoid their own
personal interests, satisfaction and simply act according to the company's policies.
The third and final culture type is aggressive Culture: organizations following an aggressive
culture promote competition amongst the employees. They promote competition among
employees so that each one performs better than his colleagues. In such a culture, employees
asking their colleague's help are often called as incompetent employees. Every employee vies
for power, attention and strives hard to win appreciation. The key features of such a culture
are opposition, power, perfectionist and competitive.
14
of internal climate and concern for people. The organization places a premium on teamwork,
participation, and consensus.
According to Cameroon & Quinn 2006 adhocracy culture, as assessed in the OCAI, is
characterized by a dynamic, entrepreneurial, and creative work place. Employees are willing
and courageous enough to take risk. The glue that holds the organization together is
commitment to experimentation and innovation. The emphasis is on being at the leading edge
of new knowledge, products, and services and readiness for change and meeting new
challenges are important Cameroon & Quinn 2006. The organization‟s long-term focus is on
fast development and accumulation of new resources. Success means producing unique and
original products and services.
Market culture or compete culture, as assessed in the OCAI, is a results oriented workplace.
Leaders are hard-driving producers and competitors who are tough and demanding. The glue
that holds the organization together is an emphasis on winning. The long-term concerns are
on competitive actions and achieving stretch goals and targets. Success is defined in terms of
markets share and penetration. Outpacing the completion and market leadership are
important. (Cameroon & Quinn, 2006)
Hierarchy culture which is also called control culture is characterized by a formal and
structured place to work (Cameron & Quinn, 2006). Rules and Procedures dictate what
employees do. Effective leaders are good coordinators and organizers. Maintaining a
smoothly running organization is important. The long-term concerns of the organization are
stability, predictability, and efficiency. Formal rules and policies hold the organization
together.
Edgar H. Schein analyzes culture in three different levels namely observable Artifacts,
espoused beliefs and underlying assumptions. He believes that the some of the confusions
surrounding the definition of what culture are really results from not differentiating the levels
at which it manifest it.
In analyzing cultures, it is important to recognize that artifacts are easy to observe but
difficult to decipher and that espoused beliefs and values may only reflect rationalization or
15
aspirations. To understand a group‟s culture, one must attempt to get at its shared
assumptions and one must understand the learning process by which such basic assumptions
come to be (Schein 2004).
Levels of Culture
All group learning ultimately reflects someone‟s original beliefs and values, their sense of
what ought to be, as distinct from what is. When a group is first created or when it faces a
new task, issue, or problem, the first solution proposed to deal with it reflects some
individual‟s own assumptions about what is right or wrong, what will work or not work.
Those individuals who prevail, who can influence the group to adopt a certain to the problem,
will later be identified as leaders or founders, but the group does not yet have any shared
knowledge as a group because it has not yet taken a common action in reference to whatever
16
it is supposed to do. Whatever is proposed will only be perceived as what the leader wants.
Until the group has taken some joint action and together observed the outcome of that action,
there is not as yet a shared basis for determining whether what the leader wants will turn out
to be valid (Schein 2004). If the group has a shared perception on an issue, then the perceived
value or belief slowly changes first into a shared value or belief, and finally into a shared
assumption. This level is about espoused values or the explicit culture of the organization's
members. This includes the expression of the mission statement, strategies, goals,
philosophies and the functioning beliefs throughout the organization Karen Cacciattolo
(2014).
The third level deals with the organization's implicit hypothesis. These are elements of
culture that are not visible and which are not usually described in organizations. These may
include unspoken rules that employees are not consciously aware of, but which are deep
rooted and may provide an explanation to understanding why things take place in a particular
way (Schein 2004).
According to De Jonge (2006), surveys and interviews with employees are not enough to
draw out these attributes, and other more in-depth means may be required, such as repetitive
clinical sessions similar to a therapeutic rapport between a psychologist and a patient.
Moreover, this level is the basic dynamic element of organizational culture that is often
overlooked by organizational behaviorists.
Among all the models Kim S. Cameroon and Robert E. Quinn organizational culture is used
in this study. In this model culture is divided in to four types of cultures namely clan culture,
adhocracy culture, market culture and hierarchy culture.
The term employee engagement and work engagement is used interchangeably in different
researches and also for the purpose of this paper the researcher will use both terms
interchangeably. Engagement has become popular term first in business then in consultancy
and now in academics. The origin of the term “employee engagement” is not entirely clear,
but most likely it was first used in the 1990s by the Gallup organization (Buckingham &
Coffman, 1999) as cited under (Arnold et. al, 2010). And here below the research will present
different conceptual explanations on the meaning and dimensions of employee engagement.
17
The first scholar who conceptualized engagement at work was Kahn (1990), who described it
as the “harnessing of organizational members‟ selves to their work roles; in engagement,
people employ and express themselves physically, cognitively, emotionally and mentally
during role performances” (p.694). In other words, engaged employees put a lot of effort into
their work because they identify with it (Arnold et. al, 2010).
Schaufeli et al ,2002 define work engagement as “ a positive , fulfilling , work related state of
mind that is characterized by vigor, dedication, and absorption” This definition of work
engagement is considered as working definition for the purpose of this research .
Perrin as cited by Kangure, (2014) defined engagement “as willingness or enthusiasm that the
employee holds to spend optional effort towards the job.” Bakkar and Scheufeli as cited by
Jebel (2013) have defined the term employee engagement that “it is a psychological state
where employees feel a vested interest in the organization‟s success and perform to a high
standard that may exceed the stated requirements of the job.” An engaged employee is aware
of business context and works with colleagues to improve performance within the job for the
benefits of the organization (Sharma & Anupama, 2010). It is a positive state of mind held by
the employees towards the organization and its values. The organization must work to
develop and nurture engagement, which requires a two-way relationship between employer
and employee (Robinson as cited by Tessema, 2014). Apart from this, Baig (2010) argued
that employee engagement is concerned with the individual contribution under healthy
working conditions, promote individual development, encourage mutual confidence and
understanding between the employer and the employee and between the employees
themselves.
Based on the definitions Schaufeli et al, 2002, which is the working definition for this
research paper employee engagement has three indicators or characteristics namely Vigor,
Dedication and Absorption.
Vigor is characterized by high levels of energy and mental resilience while working, the
willingness to invest effort in one‟s work, and persistence even in the face of difficulties.
Most scholars agree that engagement includes an energy dimension and an identification
dimension. According to Kahn (1990, 1992), Work engagement is characterized by a high
level of energy and strong identification with one‟s work. The perspective of this special
18
issue is that the field is served best by a consistent construct for work engagement, one that
focuses on employees‟ experience of work activity. Unfortunately, the broad exploration of
constructs over the past decade has not produced consensus about its meaning.
Dedication refers to being strongly involved on one‟s work, and experiencing a sense of
significance, enthusiasm, inspiration, pride, and challenge. Those with a good ethic are
dedicated to their jobs and will do anything they can to ensure that they perform well. Often
this dedication leads them to change jobs less frequently, as they become committed to the
positions in which they work and are not eager to abandon these posts. They also often put in
extra hours beyond what is expected to see that they are workers who go beyond the rest of
the workforce and truly dedicate themselves to their positions. Absorption is characterized by
being fully concentrated and happily engrossed in one‟s work, whereby time passes quickly
and one has difficulties with detaching oneself from work. (Arnold B. Bakker et. al, 2010) it
refers to being fully concentrated.
There are different models of employee engagement developed by scholars to further explain
the constructs that clarify employee engagement.
Advocacy is another measure for engagement and it is the instance how proactive employees
are in speaking about their organization and the products/services they offer. If a company
19
achieves advocacy, they will reap the rewards in both sales and recruitment. It is free
advertising and from the most credible of sources. Engagement is a combination of all the
preceding factors. An engaged worker is satisfied, motivated, committed and is an advocate
for the company and its products.
Engagement
Advocacy
Commitment
Motivation
Satisfaction
Dubin (as cited by Kangure, 2014) identified co-worker & supervisor relationship as among
the key drivers of employee engagement. He argued that when employee‟s interpersonal
relationships with their peers and supervisors are supportive and trustworthy they become
engaged with their organizations, teams and work assignments. Similarly, Schaufeli (as cited
by Tessema, 2014) identified engagement as a positive, fulfilling, work-related state of mind
characterized by vigor, dedication, and absorption. This physical cognitive and emotional
state of engagement translates into favorable outcomes such that when engaged, employees
express themselves cognitively, emotionally, and behaviorally.
Dubin as cited by Kangure (2014) identified nine variables to provide an understanding of the
antecedents and outcomes of the constructs which constitute a comprehensive model of
engagement. The antecedent variables identified in the model are: job design and
characteristics, supervisor and co-worker relationships, workplace environment and HRD
practices. The model also indicates that employee engagement is related to three major
organizational outcomes, which are job performance, turnover intentions, and organizational
citizenship behavior (Dubin as cited by Kangure, 2014).
20
2.1.5.3. ANITHA’S EMPLOYEE ENGAGEMENT MODEL
Leadership was the second main criteria identified as a fundamental factor to inform
employee engagement (Hughes &Rog as cited by Kangure, 2014). Effective leadership is a
higher-order, multi-dimensional construct comprising of self-awareness, balanced processing
of information, relational transparency, and internalized moral standards (Hughes &Rog as
cited by Kangure, 2014).
Team and co-worker relationship is another aspect that emphasizes explicitly the
interpersonal harmony aspect of employee engagement. Khan as cited by Jebel (2013) found
that supportive and trusting interpersonal relationships, as well as a supportive team, promote
employee engagement. Compensation or remuneration is an indispensable attribute to
employee engagement that motivates an employee to achieve more and hence focus more on
work and personal development (Albretcht, 2012). It involves both financial and non-
financial rewards. Attractive compensation comprises a combination of pay, bonuses, other
financial rewards as well as non-financial rewards like extra holiday and voucher schemes.
A study by Saks and Rotman as cited by Jebel (2013) revealed that recognition and rewards
are significant antecedents of employee engagement. They noticed that when employees
receive rewards and recognition from their organization, they will feel obliged to respond
with higher levels of engagement.
21
Work
Leadership
Environment
Compensation
Organizational policy
Workplace wellbeing
Another key premise of the engagement model is that the engagement drivers are interrelated;
they do not operate in isolation. An analysis of the model describes the corporate practices
(culture), quality of life (balance) as the drivers of employee engagement. Employers can
understand how to meet the needs of their employees and focus on the specific areas of
improvement that have the largest impact on engagement and business results (Shankar &
Bhatnagar, 2010). Policies of organizations play a huge role in supporting employee
engagement since they guide the decisions of managers and how teams within the
organization interact with each other. Hewitt‟s research has repeatedly shown that highly
engaged employees demonstrate better quality and efficiency compared to employees who
are actively disengaged. In agreement with the Hewitt‟s Engagement model, May and Gilson
as cited by Shankar & Bhatnagar (2010), state that understanding an organizations‟
engagement level is of little value without knowing which actions will be most effective in
increasing engagement. This is a critical part of Hewitt‟s Engagement model as it identifies
six major engagement drivers, which include: quality of life, work, people, opportunities, and
total reward and company practices.
22
Based on the definitions Schaufeli et al , 2002 , which is the working definition for this
research paper employee engagement has three indicators or characteristics namely Vigor,
Dedication and Absorption.
Work
Quality of
life
People
Company
Practice Engagem
ent
opportunity
Total
Reward
23
Brenyah RS, Obuobisa-Darko T (2017) on their study Organizational Culture and Employee
Engagement within the Ghanaian Public Sector made the following conclusions. One,
organizational culture contributes moderately to the extent of variations in employee
engagement among Ghanaian public organizations. Second, the issue of corporate culture
plays a significant role in engaging employees working in the Ghanaian public sector
organizations. Third, there were differences between the four kinds of organizational culture-
power role, support and achievement cultures and each, except role culture has a significant
effect on employee engagement in the Ghanaian public sector. Four, achievement culture and
support culture have positive and significant influence on employees with achievement
culture having the greatest influence, followed by support culture. Five, though role culture
has a positive relationship with employee engagement in the Ghanaian public sector, it is not
significant; making its parameter estimate is unreliable. This research was done based on
Hendy's four pillars of culture namely power culture, Role Culture, Achievement Culture and
Support Culture.
The second subsection, the empirical framework, presents some studies from popular authors
related to organizational culture and employees‟ engagement. (Rehema, 2015) examined the
effect of organizational culture on employee engagement. The study was anchored on the
structural theory, schien‟s theory and cultural web theory. The study adopted a descriptive
research design and stratified random sampling. Organization culture was based on six
parameters ranging from dominant characteristics, organizational leadership, management of
employees, organization glue, strategic emphasis and criteria success and employee
engagement was measured in terms of vigor, dedication and absorption. Both descriptive and
inferential statistics and revealed that 64% of employee engagement at KCB could be
explained by organizational culture.
24
(Mary et.al. 2015) attempts to investigate the relationships between employee engagement
and organization culture and to explore what drives employee engagement. The intended
participants of this study are full-time executive level employees in selected 5-star hotels
located in Sabah, Malaysia. This study plans to employ a combination of qualitative and
quantitative methods in addition to using survey instrument design and Likert Scale
questionnaire to assess dimensions of all constructs and the level of engagement of
employees. Western studies may provide comparable findings in Asian studies due to certain
similarities in the environment, culture, and communications. However, there has, so far,
been no consensus in terms of results, thus more in-depth research on this area of employee
engagement at work, organizational culture, and communication is required.
(Elizabeth, 2017) examined the effects of organizational culture (hierarchy, market, Clan,
adhocracy) on job satisfaction in the Ministry of Science and Technology. A mixed design
was employed in this study. Data were analyzed using statistical tools like frequency,
percentage, mean, Pearson rho correlation coefficient, Mann Whitney U test and Multiple
Regression. The findings of this study revealed that adhocracy culture was the dominant
culture in the Ministry. On top of this, there was positive and moderate relationship between
organizational culture and employees‟ job satisfaction. In addition, the level of employees‟
job satisfaction was higher in the Ministry. Based on the findings, it was concluded that the
Ministry of Science and Technology had focused on new innovation, risk taking and
uniqueness of performance.
(Hajima, 2018) explored the effects of organizational culture on employee performance. The
study measured the effect of organizational culture on employee performance at the Addis
Ababa Abattoirs Enterprise. Both quantitative and qualitative methods have been utilized to
25
generate the needed data. The collected data were analyzed using statistical package for
social sciences; version 24.Corelation and regression analysis were used to examine
association between dependent and independent variables. The findings suggest that
organizational culture has a positive effect and a significant relation with the performance of
employees in the study enterprise. Thus, the study demonstrated positive relationship
between organizational culture and employee Performance.
(Mersen, 2016), investigated the effect of four organizational culture traits namely,
involvement, consistency, adaptability and mission on employee commitment in Ethiopian
Airlines Company. A total of 284 employees participated in the study and the data‟s were
analyzed using descriptive and inferential statistics. The results show that the four traits
measuring organizational culture were all positively related with employee‟s commitment
within the range of r=0.530 to r=0.641. Furthermore, statistically significant of the three
organizational culture traits: adaptability, mission, and involvement, indicate that there is
significant relationship with employees‟ commitment. However, consistency doesn‟t have
significant effect on employee commitment as it is explained by significance level p>0.05.
The implications of the findings were discussed and recommendations made.
(Reis & Story, 2016) carried out a study of 890 professionals from attendees of graduate and
postgraduate programs of a business school in Brazil on perceived organizational culture and
engagement: the mediating role of authenticity concluded that those environments that are
seen to be more comprehensive and participative, and that incentivize autonomy (i.e. clan and
adhocracy cultures) neither nurture nor inhibit realism. Cultures seen as having control, are
orderly and emphasize stability (i.e. hierarchy and market cultures) are negatively related to
authenticity and therefore employees who behave more authentically at work are more
engaged with their jobs.
2.3. CONCEPTUAL FRAMEWORK
26
ORGANIZATIONAL CULTURE
Hierarchy Culture
Market Culture
EMPLOYEE ENGAGEMENT
Clan Culture
Adhocracy Culture
Fig: 1.6. conceptual framework on the effect of organizational culture on employee‟s
engagement
Source: The Researcher (Adopted from the literature review)
Adhocracy Culture
27
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
This chapter elaborates on the detailed research design and approach of the study. It explains
the description of the study area, research approach, research design, population and sample ,
sample size determination, sampling method, data source and type, data collection instrument ,
validity of data , reliability of data , data collection procedures, ethical consideration and data
analysis to be applied over the course of the study.
Target populations are those people, events, or records that contain the desired information for
the study that determine whether a sample or a census should be selected (Cooper Pamela,
2013). Bank of Abyssinia categorizes all its employees under three categories namely:
managerial, clerical, non-clerical. The target population for the study consists of all the three
categories of employees working under the three Addis Ababa area districts and employees
working at the head office under different processes unit or departments. As of January 30,
2020, the total number of employees on these three categories (managerial, clerical, non-
clerical) in Addis Ababa districts and head office is 3526. Hence the total number of population
for this study is 3526.
29
Table 3.1 Sampling frame
Because of time and resource constraints it was difficult to study all the population of the
study and taking a sample is necessary. The objective of sampling is to obtain an optimum
sample from an entire population such that the sample is representative of the target
population. It is therefore of some importance to ensure that the sample is drawn with care to
ensure that it is indeed representative. Sekeran, (2001) defines a sample as a portion of the
population that has attributes as the entire population. A random probability sampling method
was used to select the participants from the population. In probability sampling, all people
within the research population have a specifiable chance of being selected. These types of
sample are used if the researcher wishes to explain, predict or generalize to the whole
research population (Dawson, 2002).
Stratified sampling method was used to select the employee within the selected districts and
head office. Stratified sampling is a type of sampling method in which the total population is
divided into smaller groups or strata to complete the sampling process. The strata are formed
based on their common characteristics in the population data. After dividing the population
into strata namely managerial, clerical, non-clerical, the researcher randomly selected the
sample proportionally. To draw the sample from the population, the sample size
determination formula of Yamane, (1967) was used.
30
Sample formula n = N
1 + N (e)2
Where
with an acceptable 5 % margin of error and 95% confidence level the sample size is
calculated as 314.
n= 3526/1+3526(0.05*0.05)
n=3526/1+3526(0.0025)
n=3526/1+8.815
n=3526/9.815
n=359.24 (Approximately 360)
Therefore sample is used in order to minimize cost, obtain greater accuracy of results and
greater speed of data collection. Considering this factors 360 sample will be taken out the
population which is 3526 employees of the bank.
Sekeran (2001) defines a sample as a portion of the population that has attributes as the entire
population. For the purpose of this paper it was assumed that all branches and department of the
Bank perform their task uniformly with respect to policies and practices despite the fact that
they are located in geographical areas that span the state, the researcher will use a stratified
sampling. If we have a population dispersed over a wide geographic region, it may be difficult
or impossible to take a simple random sample of the units of the study population at random,
and because of Logistical difficulties may discourage single-stage random sampling techniques.
However, when a list of clusters of study units is available (e.g., districts, villages or schools) or
can be easily compiled, a number of these groupings can be randomly selected (Creswell as
cited by Kangure, 2014).
Once the sample size is determined the next step is determining the number of respondents that
is going to be selected from the head office and the three districts. In order to do that a
31
proportionate stratified sampling technique is used. In this technique the number of sampling
unit drawn from each stratum is in proportion to the population size of that stratum.
For the purpose of this study the sampling technique used was proportional stratified sampling
in combination with systematic sampling. The sample was drawn from the existing professional
employees of the Bank found in Addis Ababa by taking the three districts& head office as a
stratum.
A formula is provided by Kothari (2004) to calculate the number of elements selected from each
stratum: -
Accordingly, after applying the above formula the number of respondents selected from each
stratum was obtained which is illustrated in the following table
To collect the primary data, the researcher used mainly questionnaire. Structured
questionnaire was used to collect data from sample employees to collect primary data.
Conceptually, this study was intended to assess the effect of organizational culture on
32
employee‟s engagement in case of bank of Abyssinia Addis Ababa. Secondary data
(Collected from websites articles, reports, journals and magazines) are also used for this
study.
According to Kothari (2004), content validity is the extent to which a measuring instrument
provides adequate coverage of the topic under study. Based on this definition, the content
validity of this study was verified by the experts on the area, advisor of the research, who
look into the appropriateness of the questions and the scale of measurement. Furthermore,
discussions with fellow researchers is another way the validity and appropriateness of the
question where checked. In case of secondary data, only relevant articles and literature from
academic and scientific databases and report of Bank of Abyssinia were used for this study.
33
instrument. Accordingly, comments received from the respondents were incorporated in the
questionnaire before undertaking full scale data collection.
Consequently, Cronbach‟s alpha was employed to test the reliability of the questionnaire and
all of the questionnaire items were found to have a result higher than 0.7. Nunnally as cited
by Melese (2017) has suggested that score reliability of .70 or better is acceptable when used
in basic social science research. The cronbach‟s alpha coefficient can be calculated through
the following equation higher alpha coefficient values (the closer the reliability coefficient to
1.00) mean that the scales are more reliable. As a rule of thumb, acceptable alpha should be at
least 0.70 or above (Hall as cited by Kangure, 2014).
As we can see in the above table, the cronbach‟s alpha coefficient of the dependent and
independent variables are all above 0.7 and this gave the researcher sufficient confirmation of
data reliability of the collected questionnaires.
To collect data for the research first document & literature review was made. Then
questionnaires were developed for the research and pilot tested. The questionnaire was
distributed after an approval for distributing the questionnaires to the selected branches through
the second party was obtained. Next the questionnaires were distributed to 360 employees of
the bank working in the three districts of Addis Ababa and Head Office. Subsequently, the data
34
collected was edited and carefully checked to eliminate improperly filled questionnaires so that
only usable questionnaires were considered for analysis. Finally, the data obtained was entered
& analysed on SPSS software version 20 and the results were presented using tables & graphs.
Ethical considerations are expected to arise in any kind of research study. This paper took into
consideration those ethical issues on using proper citation, formulating and clarification of the
topic, design, access and use of data, analysis and reporting of the findings in a moral and
responsible way. The researcher tried to get the consent of the participants and assured them
that the source of data collected would remain confidential and that their anonymity will be
maintained. In addition, the Participants were provided with a covering letter stating the
purpose of the questionnaire.
The data from the survey questionnaires is analyzed quantitatively. A descriptive analysis of
all variables in the form of the measures of central tendency, frequency distribution, and the
measures of variability is applied to summarize and describe the organizational culture and
employee engagement. The study used multiple linear analyses to measure the relationship
between the independent variables, that is, Clan culture, Adhocracy culture, Market culture
and Hierarchy culture and the dependent variable, that is, employee engagement by using
statistical packages for social sciences, SPSS version 20.
Correlation analysis was done to establish whether there was correlation between
independent variable Organizational culture (Clan culture, Adhocracy culture, Market culture
and Hierarchy culture) and the dependent variable (employee engagement). This was
35
achieved through the use of Pearson correlation that indicated the correlation coefficients
between the variables.
Regression analysis was used to test whether the independent variables has any effect on
employee engagement in Bank of Abyssinia. The following model was proposed for the
purpose of running multiple linear regressions that is necessarily to test the effects and
statistical significance of organization culture on employees‟ engagement.
In addition, the study sought to ascertain the casual effect of dependent variable upon the
independent variables that is: relationship between Organizational culture and employee
engagement. To explore such, the investigator assembled data on the underlying variables of
interest and employ regression to estimate the quantitative effect of the causal variables upon
the variables that they influence. The investigator also typically assessed the statistical
significance of the estimated relationship. Statistical test included F-test and ANOVA. Data
was presented in frequency tables.
The data will be analyzed using SPSS and where appropriate, findings will be illustrated with
the aid of graphs and tables. To analyze and interpret the items on the questionnaire, the data
set surveyed will be examined using mean and standard deviation. The responses of the
respondents for the variables will be measured on a five point Likert scale. Regression analysis
will be used to determine the effect of organizational culture on employee‟s engagement. The
data is presented in the form of frequency tables, bar charts and pie charts. Data is checked for
accuracy, uniformity, logical completeness and consistency before use.
36
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS, AND INTERPRETATION
The purpose of this chapter of the research is show data presentation, analysis, and
interpretation. The chapter content includes descriptive analysis (demographic description,
descriptive analysis for scale items) and statistical tests. As stated in the research
methodology, data collected from employees of Bank of Abyssinia through questionnaire
were analyzed using SPSS (Statistical Package for the Social Science) software. Out of 360
sets of distributed questionnaires, 340 were returned, yielding 94% of response rate and were
used for data analysis, which is acceptable and sufficient for conducting the necessary
statistical test.
Incomplete questionnaire 5
This section presents a descriptive analysis of the personal profile of the respondents of Bank
of Abyssinia. The personal profile includes the gender, age, education level, years of
experience in the present bank and organizational level. The demographic characteristics of
those respondents are summarized in the following section.
37
Table 4.2: Demographic profile of respondents (employees)
Age in Years
The descriptive Analysis of the Level of Agreement of the Respondent‟s Perception towards
different Variables of the Research is stated below. The researcher uses an itemized rating
scale to construct a range. This range will be used to measure the perceived level of the
respondents towards each variable. The researcher uses the following formula to construct the
range.
n1 5
38
The mean each individual rating from 1-5 fall within the following interval.
39
The bank stresses on human growth high
2.35 .479
confidence candidness and participation
The bank explains accomplishment on the basis
of growth of human capital commitment and 2.26 .442
care for people
Valid N (list wise) 2.45
(Source: Survey Data, 2020)
Table 4.1.2.1 above shows mean scores and standard deviation for respondent's perception
towards clan culture exercised by the bank (Clan Culture) of Employees. Regarding
employee‟s perception about “The bank feels like my family” the mean score and standard
deviations are 2.71 and 1.04 respectively. Meaning employees don‟t agree that the bank feel
like their family. This implies that this culture main characteristic of making its employees
familiar with the bank is not exercised by its employees and the bank.
Employees‟ perception about “The banks leadership facilitates mentors and nurtures staff”,
mean score and standard deviation are 2.41 and .648 respectively. Meaning employees don‟t
agree that the banks leadership facilitates mentors and nurtures staff. This implies that this
culture main characteristic of leadership facilitates mentors and nurtures staff is not exercised
by its employees. Employees‟ perception about “the administration style is based on
teamwork compromise and involvement”, means score is 2.85 and standard deviation 0.65
which also means that employees don‟t agree that the administration style is based on
teamwork compromise and involvement.
Employees‟ perception about “Loyalty shared trust and commitment is what holds the bank
together”, mean score is 2.12 and standard deviation 0.79 which also means that employees
somehow don‟t agree that Loyalty shared trust and commitment is what holds the bank
together. Employee‟s perception about “The bank stresses on human growth high confidence
candidness and participation”, had a mean score and standard deviation of 2.35 and 0.47
respectively. Therefore it means respondents don‟t agree that the bank stresses on human
growth high confidence candidness and participation.
Employee‟s perception about “The bank explains accomplishment on the basis of growth of
human capital commitment and care for people” had a mean score and standard deviation of
2.26 and 0.44 respectively. Therefore it means respondents don‟t agree that the bank explains
accomplishment on the basis of growth of human capital commitment and care for people.
40
Overall perception of employees about collaborate (Clan) culture which is a family-type
organization has somehow lower mean which indicates the culture, typified by friendly place
to work where people share a lot of themselves, extended family where managers are
considered as mentors and perhaps even as parent figures, Loyalty and tradition being glue
that holds an organization together, Organizational commitment exists to the highest level
and organization emphasizes the long-term benefit of individual development, with high
cohesion and morale being important is not dominant in Bank of Abyssinia.
Table 4.1.2.2 above shows mean scores and standard deviation for respondent's perception
towards Adhocracy culture exercised by the bank (Adhocracy Culture) of Employees.
Regarding employee‟s perception about “The bank provides a vibrant innovative space” the
41
mean score and standard deviations are 1.94and 0.54 respectively. Meaning employees don‟t
agree that the bank provides a vibrant innovative space. This implies that this culture main
characteristic of providing a vibrant innovative space is not exercised by its employees and
the bank.
Employees‟ perception about “The banks leadership exhibits free enterprise invention and
risk taking”, mean score and standard deviation are 2.12 and 0.63 respectively. Meaning
employees don‟t agree that the banks leadership exhibits free enterprise invention and risk
taking. This implies that this culture main characteristic of leadership encouraging invention
and risk taking is not exercised by its employees. Employees‟ perception about” The
administration style encourages personal invention liberty and exclusivity”, means score is
2.23 and standard deviation 0.54 which also means that employees don‟t agree that the
administration style encourages personal invention liberty and exclusivity.
Employees‟ perception about “commitment to invention and development is what holds the
bank together”, mean score is 2.44 and standard deviation 0.80 which also means that
employees somehow don‟t agree that commitment to invention and development is what
holds the bank together. Employee‟s perception about “The bank stresses on procuring new
resources and creating new challenges” had a mean score and standard deviation of 2.76 and
0.97 respectively. Therefore it means respondents don‟t agree that the bank stresses on
procuring new resources and creating new challenges.
Employee‟s perception about “The bank explains success based on having newest and most
unique products” had a mean score and standard deviation of 3.00 and 0.94 respectively.
Therefore it means respondents somehow agree the bank explains success based on having
newest and most unique products.
42
4.1.3.3. DESCRIPTIVE STATISTICS OF MARKET CULTURE
Market culture or compete culture, as assessed in the Organizational Culture Assessment
Instrument (OCAI), is a results oriented workplace. Leaders are hard-driving producers and
competitors who are tough and demanding. The glue that holds the organization together is
an emphasis on winning. The long-term concerns are on competitive actions and achieving
stretch goals and targets. Success is defined in terms of markets share and penetration.
Outpacing the completion and market leadership are important. (Cameroon & Quinn 2006)
Table 4.1.2.3 above shows mean scores and standard deviation for respondent's perception
towards Market culture exercised by the bank (Market Culture) of Employees. Regarding
employee‟s perception about “The bank recognizes its employees publicly for competition
and achievement” the mean score and standard deviations are 3.68 and 0.67 respectively.
Meaning employees somehow agree that the bank recognizes its employees publicly for
competition and achievement. This implies that this culture main characteristic recognizing
its employees publicly for competition and achievement is exercised by its employees and the
bank. Bank of Abyssinia is now accelerating its marketing strategy where all employees of
the bank involve in bringing new customers and winning in the market. The bank thus
rewards employees who bring the highest customers‟ accounts and other products.
43
Employees‟ perception about “The banks leadership is aggressive and result focused”, mean
score and standard deviation are 3.88 and 0.32 respectively. Meaning employees somehow
agree that the banks leadership is aggressive and result focused. This implies that this culture
main characteristic of leadership being aggressive and result focused is exercised by its
employees and the bank. Bank of Abyssinia has much performance management system
where it controls employees whether they really meet their targets. Thus it gives targets first
and finally it measures employee‟s results against the targets given. It checks its employees
and the banks performance aggressively throughout the year for better result.
Employees‟ perception about “The administration style involves hard driving effectiveness
high demands and success”, means score is 3.76 and standard deviation 0.54 which also
means that employees agree that the administration style involves hard driving effectiveness
high demands and success.
Employee‟s perception about “The bank stresses on attaining stretched goals and winning in
the market place” had a mean score and standard deviation of 4.09 and 2.92 respectively.
Therefore it means respondents agree that the bank stresses on attaining stretched goals and
winning in the market place. Bank of Abyssinia focuses on being the leader from all other
banks and attains its goals by having the best service and technology.
Employee‟s perception about “The bank explains success as winning in the market” had a
mean score and standard deviation of 4.21 and 0.58 respectively. Therefore it means
respondents agree the bank explains success based on winning in the market. Since banking
industry is a competition among all banks and become a winner in the market, bank of
Abyssinia focuses on having the best technology and products to attract its customers for
better profit. Therefore it explains its success as winning in the market place and become the
choice of its customers.
44
Overall perception of employees about Market culture characterized by a results oriented
workplace where Leaders are hard-driving producers and competitors who are tough and
demanding, glue that holds the organization together being emphasis on winning, The long-
term concerns are on competitive actions and achieving stretch goals and targets and
explaining Success in terms of markets share and penetration are dominant in the bank.
Table 4.1.2.4 above shows mean scores and standard deviation for respondent's perception
towards Hierarchy culture exercised by the bank (Hierarchy Culture) of Employees.
Regarding employee‟s perception about “The bank is controlled and organized with
prescribed procedures that govern people” the mean score and standard deviations are 4.41
and 0.49 respectively. Meaning employee‟s agree the bank is controlled and organized with
prescribed procedures that govern people. This implies that this culture main characteristic of
having procedures that govern people exercised by its employees and the bank. The bank like
any other organizations have a well defined policies and procedures that govern its
employees to operate smoothly.
45
Employees‟ perception about “The banks leadership coordinates organizes and focus on
efficiency”, mean score and standard deviation are 4.21 and 0.63 respectively. Meaning
employees agree that the bank focuses on efficiency. This implies that this culture main
characteristic of focusing on efficiency is exercised by its employees and the bank. Bank of
Abyssinia main focus is customer satisfaction and service excellence in order to achieve a
good profit so at the end efficiency will be the end result
Employees‟ perception about “Rules and policies are what holds the bank together”, mean
score is 3.91 and standard deviation 0.44 which also means that employees somehow agree
that Rules and policies are what holds the bank together. In the bank rules and procedures
govern employees and the bank but it‟s not only the glue that is holding the bank together.
Employee‟s perception about “The bank stresses on stability efficiency control and operating
smoothly” had a mean score and standard deviation of 3.8and 0.40 respectively. Therefore it
means respondents somehow agree that the bank stresses on stability efficiency control and
operating smoothly in achieving its end result.
Employee‟s perception about “The banks explain success on the basis of effectiveness” had a
mean score and standard deviation of 3.91 and 0.44 respectively. Therefore it means
respondents somehow agree the bank explains success on the basis of effectiveness. If the
bank is well efficient and effective it will achieve desired result therefore the banks success is
determined by its efficiency and effectiveness.
Therefore after analyzing the descriptive statistics of the employees of the bank mean and
standard deviation scores the result found out that Hierarchy and Market cultures are
dominant in the bank. Hierarchy culture characterized by a formal and structured place to
46
work, where Rules and Procedures dictate what employees do, where Effective leaders are
good coordinators and organizers, where Maintaining a smoothly running organization is
important and where The long-term concerns of the organization are stability, predictability is
dominant followed by Market culture where results oriented workplace where Leaders are
hard-driving producers and competitors who are tough and demanding, glue that holds the
organization together being emphasis on winning, The long-term concerns are on competitive
actions and achieving stretch goals and targets and explaining Success in terms of markets
share and penetration. Clan and adhocracy cultures are less dominant in Bank of Abyssinia.
Table 4.1.4.1 above shows mean scores and standard deviation for respondent's perception
towards Vigor of Employees. Regarding employee‟s perception about “I burst with energy at
my work” the mean score and standard deviations are 3.03 and 0.70 respectively. Meaning
employees somehow agree that they burst with energy at their work. This implies that
employees have energy when they perform their work.
47
Employees‟ perception about “I feel strong and energetic at my work”, mean score and
standard deviation are 3.18 and .66 respectively. Meaning employees agree that they feel
strong and energetic at their work. This implies that employees feel strong and energetic
when they perform their work. Employees‟ perception about “I feel like going to work when I
woke up”, means score is 3.41 and standard deviation 0.54 which also means that employees
somehow agree that they feel like going to work when they woke up.
Employees‟ perception about “I can work for extended periods”, mean score is 3.09 and
standard deviation 0.74 which also means that employees are neutral that they can work for
extended periods. This means that most employees don‟t work for extended periods without
extra payment. Employee‟s perception about “I am mentally robust at work”, had a mean
score and standard deviation of 3.26 and 0.56 respectively. Therefore it means respondents
somehow agree that they are mentally robust at work. Employee‟s perception about “I have
high preservance at work when things are wrong” had a mean score and standard deviation of
3.38 and 0.48 respectively. Therefore it means respondents somehow agree that they have
high preservance at work when things are wrong.
Overall perception of employees about vigor with high levels of energy and mental resilience
while working, the willingness to invest effort in one‟s work, and persistence even in the face
of difficulties is good.
Table 4.1.4.2 above shows mean scores and standard deviation for respondent's perception
towards Dedication of Employees. Regarding employee‟s perception about “My work has a
48
lot of meaning and purpose” the mean score and standard deviations are 3.26 and 0.66
respectively. Meaning employees somehow feel their work has a lot of meaning and purpose.
Employees‟ perception about “I am passionate about what I do”, mean score and standard
deviation are 3.26 and .50 respectively. Meaning employees feel they are passionate about
what they do. Employees‟ perception about” I am proud of my work”, means score is 3.35
and standard deviation 0.58 which also means that employees somehow feel that they are
proud of their work.
Employees‟ perception about “I am inspired by my job”, mean score is 3.23 and standard
deviation 0.64 which also means that employees somehow feel they are inspired by their
jobs. Employee‟s perception about “My job gives me the challenge I need”, had a mean score
and standard deviation of 2.91 and 0.44 respectively. Therefore it means respondents don‟t
feel like their job is giving them the challenge they need.
Overall perception of employees about dedication being strongly involved on one‟s work,
and experiencing a sense of significance, enthusiasm, inspiration, pride, and challenge is
good.
Table 4.1.4.3 above shows mean scores and standard deviation for respondent's perception
towards Absorption of Employees. Regarding employee‟s perception about “I have no
recollection of time when I am working” the mean score and standard deviations are 3.41 and
49
0.49 respectively. Meaning employees somehow feel they have no recollection of time when
they are working.
Employees‟ perception about “Working intensely gives me contentment”, mean score and
standard deviation are 3.24 and .59 respectively. Meaning employees somehow feel working
intensely gives them contentment. Employees‟ perception about” I get engrossed in my
work”, means score is 3.76 and standard deviation 0.48 which also means that employees
somehow feel that they get engrossed in their work.
Employees‟ perception about “I forget everything else around me when I do my work”, mean
score is 3.74 and standard deviation 0.50 which also means that employees somehow feel
they forget everything else around them when they do their work. Employee‟s perception
about “When I am engaged with work I get carried away”, had a mean score and standard
deviation of 3.5 and 0.69 respectively. Therefore it means respondents feel like when they are
engaged with work they get carried away. Employee‟s perception about “I am unable to
detach myself from my work” had a mean score and standard deviation of 3.18 and 0.64
respectively. Therefore it means respondents somehow feel like they are unable to detach
themselves from their work.
Overall perception of employees about Absorption being fully concentrated and happily
engrossed in one‟s work, whereby time passes quickly and one has difficulties with detaching
oneself from work is good.
Therefore after analyzing the descriptive statistics of the employees of the bank mean and
standard deviation scores the result found out that the overall mean of employee engagement
is 3.3 which implies the overall level of engagement by the banks employees is above
average. It means that employees in Bank of Abyssinia somehow have high levels of energy
and mental resilience while working, the willingness to invest effort in one‟s work, and
persistence even in the face of difficulties, strongly involved on one‟s work, and experiencing
a sense of significance, enthusiasm, inspiration, pride, and challenge, fully concentrated and
happily engrossed in one‟s work, whereby time passes quickly and one has difficulties with
detaching oneself from work.
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4.2. INFERENTIAL STATISTICS
4.2.1. CORRELATION ANALYSIS
This study employs correlation analysis, which investigates the strength of the relationships
between the studied variables. Pearson correlation analysis was used to provide evidence of
convergent validity. Pearson correlation coefficients reveal the magnitude and direction of
relationships (either positive or negative) and the intensity of the relationship (-1.0 + 1.0).
Correlations are perhaps the most basic and most useful measure of association between two
or more variables (Marczyk, Dematteo and Festinger, 2005).
According to guidelines suggested by Field (2005) to interpret the strength of the relationship
between variables, the correlation coefficient(r) is as follows: if the correlation coefficient
falls between 0.1 to 0.29, it is weak; 0.3 to 0.49 is moderate, and> 0.5 is a strong relationship
between variables. Depending on these assumptions, all basic constructs were included in the
correlation analysis and a bivariate two-tailed correlation analysis was done. Table 4.2.1 belo
shows the correlation between the Organizational Culture and Employee Engagement in
Bank of Abyssinia.
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Table 4.11. Correlations
CLAN ENGAGEM ADHEOCR MARK HIRA
ENT ACY ET RCHY
Correlation
1.000 .017 .205** -.087 .048
Coefficient
CLAN
Sig. (2-tailed) . .025 .000 .108 .376
N 340 340 340 340 340
Correlation
.017 1.000 .064 .312* .321**
ENGAGEME Coefficient
NT Sig. (2-tailed) .025 . .023 .018 .000
N 340 340 340 340 340
Pearson's Correlation
Correlation
.205** .064 1.000 .238** .053
ADHEOCRA Coefficient
CY Sig. (2-tailed) .000 .023 . .000 .330
N 340 340 340 340 340
Correlation
-.087 .312* .238** 1.000 .311**
Coefficient
MARKET
Sig. (2-tailed) .108 .018 .000 . .000
N 340 340 340 340 340
Correlation
.048 .321** .053 .311** 1.000
Coefficient
HIRARCHY
Sig. (2-tailed) .376 .000 .330 .000 .
N 340 340 340 340 340
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
(Source: Survey Data, 2020)
From the results shown in table 4.1.3.1 above each variable correlated perfectly with itself
with coefficients value of +1.00. Pearson correlation matrix shows that there is a weak,
positive, and significant relationship between Clan culture and employees engagement with a
value of r=0.017. This implies that clan culture and employees engagement have a weak
relationship.
Pearson correlation matrix shows that there is a weak, positive, and significant relationship
between Adhocracy culture and employees engagement with a value of r=0.06. This implies
that Adhocracy culture and employees engagement have a weak relationship.
There is a moderate, positive and significant relationship between Market culture and
employees engagement with a value of r=0.312. This implies that employees‟ perception
about the work engagement will somehow be affected by Market culture.
52
There is a moderate, positive and significant relationship between Hierarchy culture and
employees engagement with a value of r=0.321. This implies that employees‟ perception
about the work engagement will somehow be affected by Hierarchy culture.
Clan Culture and Employees engagement; The result of the test shows there is a weak,
positive, and significant relationship between Clan culture and employees engagement with a
value of r=0.017. (P = 0.000 < 0.05). Previous empirical studies showed consistent result that
improvement in Organizational culture can result in improvement of employee‟s engagement.
(Abraham W., 2019)
Adhocracy Culture and Employees engagement; The result of the test shows there is a
weak, positive, and significant relationship between Adhocracy culture and employees
engagement with a value of r=0.06. (P = 0.000 < 0.05). Previous empirical studies showed
consistent result that improvement in Organizational culture can result in improvement of
employee‟s engagement. (Abraham W., 2019)
Market Culture and Employees engagement; The result of the test shows there is a
moderate, positive and significant relationship between Market culture and employees
engagement with a value of r=0.312. (P = 0.000 < 0.05). Previous empirical studies showed
consistent result that improvement in Organizational culture can result in improvement of
employee‟s engagement. (Abraham W., 2019)
Hierarchy Culture and Employees engagement; The result of the test shows there is a
moderate, positive and significant relationship between Hierarchy culture and employees
engagement with a value of r=0.321. (P = 0.000 < 0.05). Previous empirical studies showed
consistent result that improvement in Organizational culture can result in improvement of
employee‟s engagement. (Abraham W., 2019)
53
4.3 REGRESSION ANALYSIS
Kolmogorov-Smirnova Shapiro-Wilk
The above table 4.1.6 presents the results from two well-known tests of normality, namely
the Kolmogorov-Smirnov Test and the Shapiro-Wilk Test. We Shapiro-Wilk Test is more
appropriate for small sample sizes (< 50 samples) but can also handle sample sizes as large as
2000. For this reason, we will use the Shapiro-Wilk test as our numerical means of assessing
normality. If p < then 0.05, reject the H0 because the test is significant. In our survey result p
< 0.05 due to these we reject H0 and accept.
54
To analyze the normality of the data, the study also employed Skewness and Kurtosis
analysis. The skewness and kurtosis measures should be as close to zero as possible. In
reality, however, data are often skewed and kurtotic. A small departure from zero is therefore
no problem, as long as the measures are not too large compared to their standard errors
(Sprinthall, R. C. 2011). For this paper, regarding skewness and kurtosis these data are a little
skewed and kurtotic for all the variables, but it doesn‟t differ significantly from normality.
Therefore it can be assumed that the data are approximately normally distributed.
55
table below, it is Homoscedastic If it does not have an obvious pattern, there are points
equally distributed above and below zero and x axis and to the left and right of zero on y axis.
4.3.4. MULTICOLLINIARITY
Multicollinearity occurs when you have two or more independent variables that are highly
correlated with each other. This leads to problems with understanding which variable
contributes to the explanation of the dependent variable and technical issues in calculating an
multiple regression. According to Kennedy (2008) suggests that any correlation coefficient
above 0.7 could cause a serious multicollinearity problem leaded to inefficient estimation and
less reliable results. This indicates that there is no consistent argument on the level of
correlation that causes multicollinearity. Hence its correlation coefficient above 0.7 could
cause a serious multicollinearity problem, therefore from below table 10. There is no multi-
collinearity effect among the independent variables of Clan, Market, Adhocracy, and
Hierarchy cultures. In addition to the above Multi-collinearity is unlikely to be a problem if
56
the tolerance more than 0.2 (Menard, 1995), and VIF should be less than 10 (Myers, 1990).
Based on this parameter also Tolerance is more than 0.2, and VIF is also less than 10.
Correlation coefficient below 0.9 may not cause serious multicollinearity problem (Hair et al,
2006). Multicollinearity problem exists
Tolerance VIF
(Constant) 10.300 .000
CLAN 1.706 .089 .880 1.136
1ADHEOCRA 1.081 .280 .840 1.190
CY
MARKET 1.223 .222 .836 1.196
HIRARCHY -6.003 .000 .912 1.097
a. Dependent Variable: ENGAGEMENT
when the correlation coefficient among variables is greater than 0.75(Malhotra, 2007).
The following model was proposed for the purpose of running multiple linear regressions that
is necessarily to test the effects and statistical significance of organization culture on
employees‟ engagement.
Ῠ= α+ β1 X1+ β2 X2+ β3 X3+ β4 X4+ εi
Where: Ῠ = Dependent variable (organization Engagement)
α = constant
β = (Beta value) coefficient of slope of regression model
X1 = Clan Culture
X2= Adhocracy Culture
X3= Market Culture
X4= Hierarchy Culture
εi= error term
Table 4.3.4: Multiple Regression result of organizational cultures and employee engagement
The above table result show data obtained is a great contribution to existing knowledge on
this subject matter. Organization culture is positively related to employee‟s engagement due
to its high correlation value (R) which is 0.635 (63.5%). The result reveals a high degree of
dependence of employee‟s engagement on organizations culture traits. R2 is the coefficient of
determination of the two variables which shows the percentage of total variation of the
dependent variable explained by the independent variable. Chin (1998), recommended R2
values for endogenous latent variables based on 0.67 (Substantial), 0.33 (Moderate), 0.19
58
(Weak) and based on the analysis shows, R2 = 0.404 (40.4%), which is a moderate
coefficient and clearly implies that 40.4% variation in employees engagement are explained
by organization culture. The remaining 59.6% variation is explained by stochastic error term
(e) meaning that 59.6% of changes in (EE) changes are explained by factors that are not
explained in the model.
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
The above table shows that employee engagement is positively associated with
Organizational Culture and examines the most contributing independent variables in the
59
prediction of the dependent variable. Hence, the strength of each independent (predictor)
variable influence on the criterion (dependent) variable can be inquired by standardized Beta
coefficient. Therefore, the regression coefficient explain the average amount of change in
dependent variable that caused by a unit of change in the independent variable. Thus,
Hierarchy culture is the most contributing organizational culture traits in the prediction of
employee commitment with beta value 0.325, followed by Market culture (B=.199), Clan
culture (B=.094) and Adhocracy culture (B=.061) that the variables are making significant to
the prediction of employee engagement. More, table describes those significance levels of
Hierarchy culture, Market culture, Clan culture, Adhocracy culture as 000, .001, .002 and
.003 respectively, which are less than 0.05. This implies that there is statistically significant
relationship between them and the employees‟ engagement. Therefore, the null hypotheses
related to Hierarchy culture, Market culture, Clan culture, Adhocracy culture were rejected.
60
H04 Hierarchy standardized This indicate Reject the null
Culture does not Coefficients that Hirerchy hypothesis
have a (B=0.325, Culture had
significant effect p=0.00), positive effect
on employees‟ P< 0.05 on employee
engagement. engagement.
4.6 DISCUSSIONS
The aim of this study was to analyze the effect of Organization culture on the employees‟
engagement in the Bank of Abyssinia. The result of correlation and regression analysis shows
that Hierarchy culture, Market culture, Clan culture, Adhocracy culture have positive effect
on the employees‟ engagement. Reis, Trullen & Story (2016) carried out a study of 890
professionals from attendees of graduate and postgraduate programs of a business school in
Brazil on perceived organizational culture and engagement: the mediating role of authenticity
concluded that those environments that are seen to be more comprehensive and participative,
and that incentivize autonomy (i.e. clan and adhocracy cultures) neither nurture nor inhibit
realism. Cultures seen as having control, are orderly and emphasize stability (i.e. hierarchy
and market cultures) are negatively related to authenticity and therefore employees who
behave more authentically at work are more engaged with their jobs.
Even though employee engagement is treated as a relatively new field, there are some studies
that have been conducted to study the effect of organizational culture on employee
engagement. In one such study on investigating the relationship between organizational
culture and employee engagement at a South African Information Technology firm by
Naidoo & Martins (2014) they concluded that it is logical for an organization to nurture a
culture that is positive and one which ensures that employees feel and continue being
engaged in their in work in order to sustain the workers in the organization longer workers
longer than those organizations that do not emphasize and promote employee engagement. In
a study carried out by Parent & Lovelace (2015) on the impact of employee engagement and
a positive organizational culture on an individual‟s ability to adapt to organizational change,
they concluded that individual adaptability to change can be enhanced through a positive
organizational culture. They further concluded that organizations with a positive
organizational culture also foster both job and organizational engagement in their employees
and that employees with high levels of job engagement are less adaptable to change.
61
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter of the paper the researcher presents summary of the findings, conclusions, and
some relevant recommendations to practice, with the researches major contributions, as well
as for future researchers based on the objective of the study mentioned in chapter one.
The researcher summarized the following based on the research findings. There are four types
of Organizational Culture namely Hierarchy culture, Market culture, Clan culture, Adhocracy
culture measured by six main parameters which measure organization culture , adopted from
the OCAI (Organizational Culture Assessment Instrument). The parameters included: main
characteristics, institution leadership, and management of employees, glue that holds the
organization, emphasis on strategy and measures success as main categories manifested with
question under each category of culture.
After analyzing the descriptive statistics of the employees of the bank mean and standard
deviation scores the result found out that Hierarchy and Market cultures are dominant in the
bank. Hierarchy culture characterized by a formal and structured place to work, where rules
and procedures dictate what employees do, where effective leaders are good coordinators and
organizers, where maintaining a smoothly running organization is important and where the
long-term concerns of the organization are stability, predictability is dominant followed by
Market culture where results oriented workplace where leaders are hard-driving producers
and competitors who are tough and demanding, glue that holds the organization together
being emphasis on winning, The long-term concerns are on competitive actions and
achieving stretch goals and targets and explaining Success in terms of markets share and
penetration. Clan and adhocracy cultures are less dominant in Bank of Abyssinia.
On the other hand employee engagement at Bank of Abyssinia was measured in terms of
Employee vigor, dedication and absorption. The findings showed that majority of the
respondents concurred that they always persevered even when things did not go well. In
terms of employee dedication the results of the study showed that majority of the respondents
62
were proud of what they did and that their jobs were challenging. The findings further
indicated that majority of the respondents were happy when they were engaged immensely.
Therefore after analyzing the descriptive statistics of the employees of the bank mean and
standard deviation scores the result found out that the overall mean of employee engagement
is 3.3 which implies the overall level of engagement by the banks employees is above
average. It means that employees in Bank of Abyssinia somehow have high levels of energy
and mental resilience while working, the willingness to invest effort in one‟s work, and
persistence even in the face of difficulties, strongly involved on one‟s work, and experiencing
a sense of significance, enthusiasm, inspiration, pride, and challenge, fully concentrated and
happily engrossed in one‟s work, whereby time passes quickly and one has difficulties with
detaching oneself from work.
This research has shown that there is a statistically significant four organizational culture and
employee engagement in which p<0.05. Accordingly, null hypotheses related to Hierarchy
culture, Market culture, Clan culture, Adhocracy culture were rejected. This implies that all
culture types i.e. Clan culture, Adhocracy culture Market culture and Hierarchy culture have
positive effect on employee‟s engagement with a value of B= 0.094, 0.061, 0.199, 0.325
respectively. Pearson Correlation coefficients indicate that all organizational culture traits
have a moderate positive correlation with employees engagement within the range of 0.01 to
0.32, all were significant at p<0.01 level.
The study found that significant correlation matrix between organization culture and
employees engagement. That means an identity matrix is matrix in which all of the diagonal
elements are 1 and all off diagonal elements are close to 0 in a good model. The result of
correlation and regression analysis shows that Hierarchy culture, Market culture, Clan
culture, Adhocracy culture have positive effect on the employees‟ engagement.
5.2. CONCLUSIONS
From the findings discussed above, overall perception of employees about collaborate (Clan)
culture which is a family-type organization has somehow lower mean which indicates the
culture, typified by friendly place to work where people share a lot of themselves, extended
family where managers are considered as mentors and perhaps even as parent figures, loyalty
and tradition being glue that holds an organization together, organizational commitment
exists to the highest level and organization emphasizes the long-term benefit of individual
63
development, with high cohesion and morale being important is not dominant in Bank of
Abyssinia.
Finally, it can be concluded from the results discussed above that organizational culture plays
a significant role in employees‟ engagement. From the results of this research, it can be
concluded that the organization culture has a significant effect on employee engagement at
Bank of Abyssinia. This deduction is supported by the findings of this study that clearly
showed that there is moderately positive relationship between organization culture and
employee engagement. The study findings revealed that Hierarchical culture is the most
dominant at Bank of Abyssinia. Market culture is also dominant though to a large extent.
Adhocracy and clan culture exist to a very small extent. The result of correlation and
regression analysis shows that Hierarchy culture, Market culture, Clan culture, Adhocracy
culture have positive effect on the employees‟ engagement.
64
5.3. RECOMMENDATIONS FOR POLICY AND PRACTICE
Having in mind there is a need to instill appropriate organization culture. This could be done
by putting policies, strategies and development plans that encourage a culture of creativity
and encourages innovation at all levels of the organization. By inculcating an entrepreneurial
culture at all levels will encourage staff to stick out their necks to take risks whenever
opportunities present themselves. This will go a long way in making the institution as
dynamic as possible given the fact that the banking industry changes with change in
technology.
The study also recommends that the management keeps on adapting to change as well as re-
assessing the effect and frequency of mitigation measures adopted. This will help to identify
whether the adopted counteractive culture are making any acceptable difference. This study
recommends that banks should empower employees and reinforce team orientations, embrace
integration, co-ordination, organizational learning, agreement and core values and they
should also create competence development to promote employee commitment. It is essential
that banks give due consideration to their target market while trying to achieve their mission.
The management therefore should aim to obtain an in-depth understanding of the bank‟s
clients, their credentials & their businesses in order to fully know their customers as well as
motivate their employees.
The leadership of commercial banks should nurture upcoming talents and develop a staff
retention strategy aimed at ensuring value of employee abilities. An organization with lower
employee turnover is perceived more competitive in the long run. Strategic emphasis should
mainly focus on human growth, high confidence, candidness and participation. This will go a
long way in engaging staff to focus on their set targets thus greater satisfaction and
engagement.
There is need to nurture a culture of mentorship where loyalty to the bank is important and
where staff feels that they are highly involved in the matters of the bank. This would go a
long way in making the staff feel engaged which would be shown by their levels of vigor,
dedication and absorption. In doing this, the bank would need to apply a multifaceted
approach.
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5.4 LIMITATION AND IMPLICATIONS TO FURTHER RESEARCH
5.4.1. LIMITATIONS OF THE STUDY
The research focused on only organization culture only and was not exhaustive in this area.
There could be many other parameters influencing employee engagement but the study only
focused on organization culture. Whereas a bigger sample and wider coverage would give
better result, this study was only limited to a sample of employees from selected districts of
BOA due to cost constraint. The researcher did not collect data from all BOA branches and
other banks.
66
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APPENDICES
Appendix 1: Questionnaire
I would like to confirm you, respondents that the information you would provide will
certainly be kept confidential . If you face with any unclear questions please contact ABEJE
KASSAHUN ADAMU (+251-913-75-10-47).
Thank you in advance for filling the questionnaire and making considerable sacrifice.
74
PART B: ORGANIZATIONAL CULTURE
Please rate the following statements by ticking (√) in the appropriate box to indicate how
much you agree or disagree with each statement. 1 Strongly Disagree 2 Disagree 3 Neutral 4
Agree 5 strongly agree
key words:- SD- Strongly disagree; D- Disagree; N- Neutral; A- Agree; and SA- Strongly
Agree.
SD D N A SA
Clan Culture
1 The Bank feels like my family
2 The banks leadership facilitates, mentors and nurtures staff
3 The administration style is based on teamwork, compromise and
involvement
75
challenges.
6 The bank explains success based on having newest and most
unique products.
Market Culture SD D N A SA
1 The Bank recognizes its employees publicly for competition and
achievement.
2 The banks leadership is aggressive and result focused
3 The administration style involves hard driving effectiveness, high
demands , and success
4 Emphasis on accomplishment and goal attainment is what holds
the bank together.
5 The bank stresses on attaining stretched goals and winning in the
market place.
6 The bank explains success as winning in the market, leadership in
a competitive market is vital
Hierarchy Culture SD D N A SA
1 The Bank is controlled and organized with prescribed procedures
that govern people
2 The banks leadership coordinates, organizes and focus on
efficiency
3 The administration style is characterized by security of
employment , predictability and steadiness in relationships
4 Rules and policies are what holds the bank together and smooth
operations are considered very important
5 The bank stresses on stability, efficiency, control and operating
smoothly.
6 The bank explains success on the basis of effectiveness.
76
PART C: EMPLOYEE ENGAGEMENT
Please rate the following statements by ticking (√) in the appropriate box to indicate how
much you agree or disagree with each statement. 1 Strongly Disagree 2 Disagree 3 Neutral 4
Agree 5 Strongly agree
key words:- SD- Strongly disagree; D- Disagree; N- Neutral; A- Agree; and SA- Strongly
Agree.
Vigor SD D N A SA
1 I burst with energy at my work
2 I feel strong and energetic at my work
3 I feel like going to work when I wake up
4 I can work for extended periods
5 I am mentally robust at work
6 I have a high perseverance at work even when things are wrong
Dedication SD D N A SA
1 My work has a lot of meaning and purpose
2 I am passionate about what I do
3 I am proud of my work
4 I am inspired by my job
5 My job gives me the challenge I need
Absorption SD D N A SA
1 I have no recollection of time when I am working
2 Working intensely gives me contentment
3 I get engrossed in my work
4 I forget everything else around me when, I am doing my work
5 When I am engaged with work I get carried away
6 I am unable to detach myself from my work
77
Appendix 2: መጠይቅ
ይህ መጠይቅ በስራ አመራር የድህረ ምረቃ ተማሪ የተዘጋጀ ነው፡፡ ይህ መጠይቅ በአቢሲኒያ ባንክ ውስጥ የባንኩ የስራ
ባህሌ በሰራተኛው ተሳትፎ ሊይ ያሇውን ተፅእኖ ሇማጥናት መረጃ ሇመሰብሰብ የተዘጋጀ ነው፡፡ መጠይቁ በድርጅቱ
ሰራተኞች የሚሞሊ ይሆናሌ፡፡ በዚህ መጠይቅ የሚሰበሰበው መረጃ ሙለ በሙለ ሇትምህርታዊ ጥናት ብቻ የሚውሌ
ነው፡፡ ጥናታዊ ጽሁፈም የሚዘጋጀው በቅድስተ ማሪያም ዩንቨርስቲ ኮላጅ በስራ አመራር ዘርፍ ሇድህረ ምረቃ
ትምህርት ማሟያ ነው፡፡
የዚህ ጥናት አዘጋጅ ማረጋገጥ የሚፇሌገው ሇዚህ መጠይቅ ምሊሽ የምትሰጡት መረጃ በሙለ ሚስጥራዊነቱ ተጠብቆ
ሇትምህርታዊ አገሌግልት ብቻ የሚውሌ መሆኑን ነው፡፡ እንዲሁም በጥያቄዎቹ ውስጥ ግር የሚለ ሃሳቦችን ወይም
ጥያቄዎችን የበሇጠ ማብራሪያ ሇማግኘት አጥኚውን በማነጋገር ሃሳቦችን መረዳት ይቻሊሌ፡፡ አበጀ ካሣሁን አዳሙ 251-
913-75-10-47
ክፍሌ አንድ፡- የግሌ መረጃ (ምሊሽዎን በተሰጡት ሳጥኖች ውስጥ ጭረት ያድርጉ)
1. ፆታ ወንድ ሴት
2. እድሜ 18-30 31-45 46-60 60 በሊይ
3. የትምህርት ደረጃ ፒ ኤች ዲ ማስተርስ ዲግሪ
ዲፕልማ ሰርተፍኬት
4. የስራ ቆይታ (ሌምድ) ከ1 አመት በታች ከ 1-5 አመት ከ 6-10 አመት
ከ 11-15 አመት ከ 15 አመት በሊይ
5. የስራ ደረጃ ኦፕሬሽን ክሇሪካሌ ማኔጅመንት
እባክዎ ሇሚከተለት ጥያቄዎች መስማማት እና አሇመስማማትዎን ደረጃ ቲክ በማድረግ ይመሌሱ፡፡ (1- በጣም
አሌስማማም 2- አሌስማማም 3- ገሇሌተኛ 4- እስማማሇሁ 5- በጣም እስማማሇሁ)
ቀሊት መፍቻ በአ- በጣም አሌስማማም አ- አሌስማማም ገ- ገሇሌተኛ እ- እስማማሇሁ በእ- በጣም እስማማሇሁ
በአ አ ገ እ በእ
ክሊን ካሌቸር
1 ባንኩ ሌክ እንደቤተሰቤ ይሰማኛሌ
2 የባንኩ አመራር ሰራተኞች እንዲሰሩ ያነሳሳሌ፡፡ (ይንከባከባሌ)
78
3 የባንኩ የአስተዳደር ዘይቤ በቡድን ስራ፤ ስምምነት እና ተሳትፎ ሊይ የተመሰረተ ነው
አዲሆክራሲ ካሌቸር በአ አ ገ እ በእ
1 ባንኩ ሇሰራተኛው አዲስ የፇጠራ ቦታ ይሰጣሌ፤ ሰራተኛው ሃሊፉነትን እንዲወስድ
ያደርጋሌ
2 የባንኩ አመራር ነጻ የፇጠራ ቦታ እና ሰራተኛው ሃሊፉነትን እንወስድ ያነሳሳሌ
ማርኬት ካሌቸር በአ አ ገ እ በእ
1 ባንኩ ሰራተኛው ስራውን የማከናወን ትኩረት እንድሰጥ ያደርጋሌ
2 የባንኩ አመራር የሰራተኞች ውጤት ሊያ ያተኮረ ነው
79
ሃይራርኪ ካሌቸር በአ አ ገ እ በእ
1 ባንኩ በተደነገጉ ስርዓቶች የተደራጀ ነው
2 የባንኩ አመራር የሰራተኞች ውጤተማነት ሊያ ያተኩራሌ
3 የባንኩ የአስተዳደር ዘይቤ በሰራተኛው የስራ ዋስትና እና ግንኙነቶች ውስጥ ተሇይቶ
ይታወቃሌ፡፡
4 ደንቦች እና ፖሉሲዎች ባንኩን አንድ የሚያደርግ አካሌ ነው
5 ባንኩ መረጋጋትን፤ ቅሌጥፍናን፤ ቁጥጥርን እና ስራውን በተቀሊጠፇ ሁኔታ ማከናወን
ሊይ ያተኩራሌ
6 ባንኩ ውጤታማነትን ሇስኬት መሰረት አድርጎ ያያሌ፡፡
እባክዎ ሇሚከተለት ጥያቄዎች መስማማት እና አሇመስማማትዎን ደረጃ ቲክ በማድረግ ይመሌሱ፡፡ (1- በጣም
አሌስማማም 2- አሌስማማም 3- ገሇሌተኛ 4- እስማማሇሁ 5- በጣም እስማማሇሁ)
ቀሊት መፍቻ በአ- በጣም አሌስማማም አ- አሌስማማም ገ- ገሇሌተኛ እ- እስማማሇሁ በእ- በጣም እስማሇሁ
ጉሌበት በአ አ ገ እ በእ
3 በስራዬ እኮራሇሁ
80
4 ሇስራዬ ተነሳሽነት አሇኝ
81